How To Make Crypto Mining Cheaper? Buy a Power Plant!

That’s exactly what one Russian businessman did to cut costs on electricity.

How do you make cryptocurrency mining more affordable? Get a more affordable electricity. And how to do that – buy your very own power plant!

In what sounds like start of a joke, we have one Russian businessman buying a power plant of its own. Actually, he got two power stations, because, you know, just in case — or because, he can.

Instead of establishing an office nearby a power station, he went one step forward and now he’s the one powering what will likely be a missive mining rig.

The report comes from RT, which says the businessman in question is Aleksey Kolesnik who has all but confirmed the deal. The news outlet claims the two power plants are based in Perm and Udmurtia, roughly 1,200 km east of Moscow, and will be refurbished into a data center and mining operation.

Kolesnik paid around $3 million for both power stations, but it is not clear when mining will start. Chances are he is waiting for the government’s green light or something of that sorts. Or he just needs time to set up all the equipment.

In any case, even without proper regulation, big crypto-mining operations exist in Russia, though they didn’t caught the attention of the wider media — because, you know, they don’t produce their own power.

For what it matters, Russia is expected to legalize and regulate cryptocurrency trade in the country by July 2018, which means taxing mining and crypto-trading. Even with taxes — and given today’s prices of major cryptocurrencies — this will be a highly profitable rig.

Russian billionaires are adopting Bitcoin

Kolesnik is by no means the only rich guy in Russia looking to benefit from the meteoric growth of virtual currencies; a few local billionaires — including Roman Abramovich, Aleksandr Frolov and Aleksandr Abramov — are reportedly investing large amounts of money in Bitcoin and other cryptocurrencies.

As we have reported earlier, these activities are said to be conducted through the European fund called Blackmoon Crypto, a subsidiary of Blackmoon Financial, which itself intends to establish and maintain the “best framework for tokenized funds around the world.”

In addition, we have Roman Trotsenko who doesn’t just want to buy cryptocurrencies; instead, he plans to launch a cryptocurrency exchange platform of its own, as well as a service that could be used for organizing initial coin offerings (ICO).

“We had an interest in investing only in Bitcoin and we’re developing the infrastructure; we’re not going to move passengers, but rather service them on the ground,” he told local newspaper The Bell.

Blockchain is also on agenda, across the country

Like that’s the case with many other countries, both the government and private sector in Russia are also looking to take advantage of decentralized computing.

Sberbank, which is one the largest banks in the country, has recently launched a dedicated R&D group to explore the use of blockchain to improve its operations. The Sberbank Blockchain Lab will be working to add blockchain to existing services as well as create new ones, relying on decentralized computing for trust and security.

Also worth noting — we think — is the work of the local Burger King office, which has introduced a virtual currency of its own. Dubbed WhopperCoin, it is used as part of the fast food chain’s loyalty program, rewarding customers one blockchain-based token for each ruble they spend in-store.

So yes, when it comes to blockchain and cryptocurrency – things are heating up in Russia. Keep watching this space as we bring you more…

DISCLAIMER: Opinions expressed here are author's alone, not those of any partner bank, credit card issuer, hotel, airline, or other partner. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

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